A Weightloss and diet forum. WeightLossBanter

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Go Back   Home » WeightLossBanter forum » alt.support.diet newsgroups » Low Carbohydrate Diets
Site Map Home Authors List Search Today's Posts Mark Forums Read Web Partners

Buying on the dips an excellent gold bull market strategy



 
 
Thread Tools Display Modes
  #1  
Old April 7th, 2008, 08:49 AM posted to alt.support.diet.low-carb
[email protected]
external usenet poster
 
Posts: 4
Default Buying on the dips an excellent gold bull market strategy

Buying on the dips an excellent gold bull market strategy

Gold suddenly became 10% cheaper last week, producing another nice
buying opportunity in this bull market. So far buying on the dips has
been the best strategy for gold investors since 2002. And perhaps
significantly many precious metal stocks failed to fall with the
latest price drop, maybe signaling that staying long on the shares is
a good idea.Precious metals have always been a volatile asset class,
and in a bull market that should not worry investors unduly unless
they are trading for short-term gains or worse still have bought on
margin with debt.

Even professional gold traders are reluctant to use margin finance.
This certainly accelerates the upside potential of price movements but
equally it can quickly wipe out your capital base in a sudden down
swing. That gold can suddenly correct was evident last week with the
biggest daily fall in two years. Silver pulled back even more sharply
from $22 to $17 an ounce.

However, investors who boldly bought into the gold and silver share
portfolios listed in this column last week did not fare too badly at
all. Some shares hardly moved despite the precious metal price
correction.

Hold on to stocks
This seems to indicate that shareholders do not want to give up their
gold stocks in the current bull market. Indeed, this is probably
sensible as there are many examples of panic share sales that are
later regretted in a bull market, as retracement can be equally rapid
and the trend is still upwards.

A more intelligent strategy would be to fish around for a few stocks
that have been downed in the events of last week and buy them now at
cheaper prices. For if gold is in a cyclical bull market, as many
experts believe, then cheap stocks are going to become a rare
commodity as the gold bull market moves ahead.

It is easy to find experts who see the yellow metal hitting $1,200 an
ounce this year and silver $25. And over the subsequent two or three
years there are many who point to $2,000 and $50 an ounce, with the
potential for a price spike to far higher levels.

Junior explorers
But as precious metal prices rise there will be a subtle rotation of
funds within this asset class into those stocks now regarded as the
most risky. This is similar to what happened in the IT stock boom of
the late 1990s, which ended with the dot-com IPO boom.

In the case of precious metals investors start with bullion, graduate
to the larger producers and then switch to the smaller producers, and
last but not least the junior exploration companies. The latter own
the claims to areas likely to produce future gold supplies, and the
value of this land will show exponential growth in the later stages of
a gold boom.

At least that is what happened last time, and it may not be different
this time. Veteran gold bug Jim Sinclair is offering private wagers
that juniors will perform in the same way this time, and has invested
$23m in just one, unnamed company himself. Follow the smart money,
perhaps!

See also: More news Visit www.victoriahousing.pk
Regards
Salman Mansoor
Manager IT Solutions
Neon Solutions
 




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
WHAT A BUNCH OF BULL Erich Schultheis, the man that owns an ISP. General Discussion 2 May 21st, 2006 04:41 AM
Red Bull... OmManiPadmeOmelet Low Carbohydrate Diets 15 June 5th, 2005 02:54 PM
Anyone ever eat these dips? nanner Low Carbohydrate Diets 2 March 23rd, 2005 03:55 PM
Red Bull Energy Drink Tifosi Bob General Discussion 5 December 7th, 2004 04:09 AM


All times are GMT +1. The time now is 08:34 PM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright ©2004-2024 WeightLossBanter.
The comments are property of their posters.